On 21 March 2016, the Income Tax Division of the Isle of Man Treasury issued a revised guidance note (GN 34). GN 34 covers the procedures and penalties for incorrect returns. The main changes in the revised version concern the level of penalties imposed. Under the Isle of Man's Income Tax Act 1970, the maximum penalty imposed for underpaid tax resulting from an incorrect return is up to 100% of the tax due, and up to 200% in cases of fraud. Interest also applies. In practice, a lower penalty is generally imposed where disclosure is made voluntarily or the taxpayer...